Churches - registration and funding question.

[Ag_not]

Just a quick question to fill in another gap in my knowledge. Do Churches pay tax on their income? Is there any control on who can set up a church? Is there any outside regulatory body that keeps an eye on the activities of churches? Does this vary from country to country and state to state?

 

[ChristianKnight]

Probably depends on the denomination of the church. If I wanted to start a “church” I’d just a build a building and preach every sunday and see how people respond.

 

[tGette]

Just a quick question to fill in another gap in my knowledge. Do Churches pay tax on their income? Is there any control on who can set up a church? Is there any outside regulatory body that keeps an eye on the activities of churches? Does this vary from country to country and state to state?

Churches are tax exempt. They are considered “non-profit” organizations.
There are guidelines and I do not know all of them. I know one is that they cannot get too involved politically, especially when it comes to supporting a specific candidate.

As far as a regulatory body, I do not know of one.

Also, I do not know what constitutes a church under the government. Somehow the Church of Scientology fell under this category. When you research in to that “religion” you see that their motivation for being declared a religion/church was purely for the tax exempt status.

Sorry I cannot really answer your question too well. I think about this sometimes and you have made me wonder even more now!

 

[Ag_not]

When you research in to that “religion” you see that their motivation for being declared a religion/church was purely for the tax exempt status.!

Hmmmm … this is very precisely what I was wondering about

 

[JMJ_coder]

Probably depends on the denomination of the church. If I wanted to start a “church” I’d just a build a building and preach every sunday and see how people respond.

You don’t even need a building now. You could just set up a website and/or a bank account and there you go. Heck, you could even sit around a campfire and smoke pot with a bunch of hippies for your ‘services’ and claim that’s a religion (though I don’t recall if they won their ‘let’s legally take peyote’ case in court).

As far as a regulatory agency - that would be the IRS to make sure they fulfill the conditions of their tax-exempt status - which basically boils down to shutting up about politics and morality, though some, like the Catholic Church sometimes just thumb their nose up at that and proclaim the truth anyway.

 

[1ke]

Just a quick question to fill in another gap in my knowledge. Do Churches pay tax on their income?

Not in the United States.

Is there any control on who can set up a church?

Not in the United States.

However, the IRS controls who can be tax exempt and therefore anyone claiming to be a “church” must meet their definitions regarding tax law in order to enjoy tax exempt status-- but not to be a “church.” There is nothing requiring a church to seek tax exempt status.

Is there any outside regulatory body that keeps an eye on the activities of churches?

In the United States we have freedom of religion and freedom of assembly. So, no, our activities are not “monitored.”

There are probably some groups who think it’s their purpose to do so, but then they also have freedom of assembly and freedom of speech so c’est la vie.

There isn’t any *government *body designated to “monitor” churches if that is what you mean.

Does this vary from country to country and state to state?

From country to country it varies immensely, certainly. Christianity is completely illegal in Saudi Arabia, for example.

In the United States, freedom of religions and freedom of assembly are guaranteed in the US Constitution and therefore no state can abridge that right.

I’m not really sure what you are driving at with these questions.

 

[bpbasilphx]

Churches DO pay taxes on whatever property they own that is not directly related to their mission.

For example, a church that owns an apartment house or hotel, and receives income from its rent MUST pay the property taxes.

Something else: contrary to what many people think, clergy MUST pay income taxes. Furthermore, they are considered self-employed, so must pay at a witholding rate HIGHER than the general population.

And if they live in a church-provided residence, this is considered income and they must pay income tax based on the fair market value of its rental.